Black scholes formula allows for this blatant fraud to happen. Trump was going to solve it in his second term but that’s why citadel and the big brokers helped the democrats cheat in the election.
Fraud: Broker kind of "frontruns" client order. Reporting to SEC?
- Thread starter thecoder
- Start date
Black scholes formula allows for this blatant fraud to happen. Trump was going to solve it in his second term but that’s why citadel and the big brokers helped the democrats cheat in the election.
he should get his own broker dealer license. That’s the only way to trade and not get ripped off from this blatant fraud.
traider, I've monitored this happening daily for more than a week now, and have even made many screenshots, even of how other sites report the Bid of this option, and today I've even opened a support ticket and asked them about what's going on with my order. I'll summarize when I get a reply from them, but I think they will respond not before Monday.
I can't disclose the ticker here yet, but suffice to say that it's a "normal" listed option of a listed stock (ie. not OTC nor ADR or so) with spot < $1 (it's by definition NOT a penny stock!
S.b. since it's a listed stock...) with low vol & low avgvol. I think the market of the stock is NasdaqCM. IV of the OTM strike used in the order is about 130%, it's a biotech stock (they often have such high IVs). And: it's a GTC limit order and I haven't changed the Bid since I initially submitted it.
The following info has IMO nothing to do with the subject here, I included it just for "completeness":
Regarding definition of "Penny Stock" ( https://en.wikipedia.org/wiki/Penny_stock )
I can't disclose the ticker here yet, but suffice to say that it's a "normal" listed option of a listed stock (ie. not OTC nor ADR or so) with spot < $1 (it's by definition NOT a penny stock!
S.b. since it's a listed stock...) with low vol & low avgvol. I think the market of the stock is NasdaqCM. IV of the OTM strike used in the order is about 130%, it's a biotech stock (they often have such high IVs). And: it's a GTC limit order and I haven't changed the Bid since I initially submitted it.The following info has IMO nothing to do with the subject here, I included it just for "completeness":
Regarding definition of "Penny Stock" ( https://en.wikipedia.org/wiki/Penny_stock )
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16 exchanges tied together by linkage and one source of quotes - OPRA - changing the market on one exchange may or may not change the NBBO if it is multiply listed. The order would also need to be labeled "Firm" in the OPRA character field. If a better market existed away it should ship, unless labeled as not to. So kinda tough to accomplish this - would a broker really risk thousands in fines for $.05 and the likelihood of getting booted of OPRA and other sanctions.
Plus if this bullshit was true - wouldn't you want a higher bid - not a higher offer, but a higher bid as outlined.
You can send a tip to the SEC tipline if you thought this was systemic. Great Whistleblower rewards if fines are levied.
Plus if this bullshit was true - wouldn't you want a higher bid - not a higher offer, but a higher bid as outlined.
You can send a tip to the SEC tipline if you thought this was systemic. Great Whistleblower rewards if fines are levied.
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Where do you send your order? IB has been using their dark pool more.
You can be assured that there is no oversight as I watched & monitored this happening for more than a week now since the beginning.
And others had such an experience as well, they confirmed my finding generally.
And: I suspect this fraud method is the method that allows most of the brokers recently (since RobinHood) to offer $0 commission
What a gigantic FRAUD!At least tell us which broker then.
One of the biggest US brokers. Hint: it's not IB